The District Engineer has determined the public infrastructure benefiting the assessed residential lots is complete.  No objections to the assessment or to the Project (as defined in EMRCFD RES 2021-141) have been submitted to the District.  The Board will hold a public hearing regarding the assessment.  Following the public hearing, the Board will consider resolution EMRCFD RES 2021-144, which is the final step in the procedures necessary to form the Montecito No. 3 Assessment District (the “Assessment District”) and to provide for assessments to pay the debt service on special assessment revenue bonds.

There is no direct fiscal impact of this action, however, it is a required step for the special assessment district to potentially issue revenue bonds in the principal amount of up to $598,000.  These bonds will acquire the infrastructure, pay appropriate capitalized interest, establish a reserve fund, and pay for costs of issuance of the bonds.  Property owners within the Assessment District will pay the annual debt service payments for the special assessment revenue bonds.  The intention is to have the annual debt service payment collected by the Maricopa County Treasurer by adding the amount due from each property owner on their annual property tax bill.  The 73 single family detached lots are requested to be assessed approximately $8,191.78.

NNP III – Estrella Mountain Ranch, LLC (“Developer”), the sole landowner of the property, submitted a request to form Montecito Assessment District No. 3.  The proposed district will create 73 individual assessments of $8,191.78 to acquire Calistoga Drive and associated engineering, design, survey, review fees, construction permits, testing, grading, installation of wet utilities, dry utilities, storm drain, curb and gutter, asphalt pavement, landscaping, and streetlights from approximately 184th Lane west to 186th Avenue. On August 23, 2021, the District Board conducted a public hearing and adopted a resolution relating to the feasibility report for the Assessment District.  The feasibility outlined the location, associated projects, and the financing plan.  On that date, the District Board also ordered the work for Calistoga Drive and approved the assessments on the District based on the approved feasibility report.

The District Engineer completed a review of the work related to the public infrastructure and public infrastructure purposes to be financed by the special assessment revenue bonds.  The District Engineer has determined that the work is complete, benefits the lots within the District, and is assessed to each lot in proportion to the benefits.  No landowners objected to the formation of the Assessment District, the work or the assessment.

District staff has reviewed the District Engineer’s certificate regarding the work and has determined that it is proper for the District Board to hold a hearing on the assessment, and thereafter to consider EMRCFD RES 2021-144, completing the final step in the procedures necessary to form the Assessment District and to provide for assessments to pay the debt service on special assessment revenue bonds.